An Act concerning tires; relating to regulation of storage, recycling, processing and disposal of used and waste tires; amending K.S.A. 65-3424, 65-3424b and 65-3424i and K.S.A. 1995 Supp. 65-3424a, 65-3424d, 65-3424f, 65-3424g and 65-3424k and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 65-3424 is hereby amended to read as follows: 65- 3424. As used in K.S.A. 65-3424 through 65-3424i, and amendments thereto, unless the context otherwise requires:

(a) ``Abatement'' means the processing or removing to an approved storage site of waste tires which are creating a danger or nuisance.

(b) ``Beneficial use'' means the use or storage of waste tires in a way that creates an on-site economic benefit, other than from processing or recycling, to the owner of the tires.

(c) ``Contaminated waste tire'' means a tire which, as determined in accordance with rules and regulations adopted by the secretary, is recov- ered in a project to abate a waste tire accumulation and is so coated by or filled with dirt, mud, sludge or other natural substances as to render the tire substantially unsuitable for processing.

(d) ``Landfill'' means a disposal site in which the method of disposing of solid waste is by landfill, dump or pit and which has a solid waste disposal area permit issued under K.S.A. 65-3401 et seq., and amend- ments thereto.

(d) (e) ``Mobile waste tire processor'' means a person who processes waste tires at other than a fixed site.

(f) ``Municipal landfill'' means a landfill where residential waste, or residential and other nonhazardous waste, is placed for disposal.

(g) ``Person'' means any individual, association, partnership, limited partnership, corporation or other entity.

(h) ``Process'' means bale or cut or otherwise alter whole waste tires so that they are no longer whole.

(e) (i) ``Secretary'' means the secretary of health and environment.

(f) (j) ``Store'' or ``storage'' means the placing of waste tires in a man- ner that does not constitute disposal of the waste tires. Storage includes the beneficial use of waste tires as fences, silo covers and erosion control, and such other beneficial uses as the secretary determines do not create health or environmental risks.

(g) (k) ``Tire'' means a continuous solid or pneumatic rubber covering encircling the wheel of a vehicle or aircraft, or an innertube of such a covering.

(h) (l) ``Tire retailer'' means a person in the business of selling new or used replacement tires at retail.

(m) ``Used tire'' means a tire that has been removed from a wheel following a period of use and has been determined by its owner to have reuse potential as a tire.

(i) (n) ``Vehicle'' has the meaning provided by K.S.A. 8-1485 and amendments thereto and includes implements of husbandry, as defined by K.S.A. 8-1427 and amendments thereto.

(j) (o) ``Waste tire'' means a whole tire that is no longer suitable for its original intended purpose because of wear, damage or defect.

(k) (p) ``Waste tire collection center'' means a site where used or waste tires are collected from the public or from customers of a business prior to being offered for recycling and where fewer than 1,000 tires are kept on the site on any given day or disposal.

(l) (q) ``Waste tire processing facility'' means a fixed site where equip- ment is used to cut, burn or otherwise alter whole waste tires so that they are no longer whole process waste tires.

(m) (r) ``Waste tire site'' means a site at which 1,000 or more whole waste tires are accumulated. ``Waste tire site'' does not include: (1) A site that is an integral part of a permitted waste tire processing facility; (2) an accumulation of tires on the premises of a tire retreading business, for use in the business; (3) an accumulation of tires on the premises of a business that, in the ordinary course of business, removes tires from motor vehicles; or (4) an accumulation of tires on the premises of a tire retailer, accumulated in the normal course of the tire retailer's business.

Sec. 2. K.S.A. 1995 Supp. 65-3424a is hereby amended to read as follows: 65-3424a. (a) The owner or operator of any waste tire site, within six months after the effective date of this act, shall provide the department with information concerning the site's location and size and the approx- imate number of waste tires that are accumulated at the site and shall initiate steps to comply with subsection (b).

(b) No person shall:

(1) Maintain a waste tire site unless: (A) such site is an integral part of the person's waste tire processing facility; or (B) the tires accumulated at such site are for use in the person's tire retreading business unless such person holds a valid permit issued for such site pursuant to K.S.A. 65- 3424b and amendments thereto;

(2) dispose of waste tires in the state unless the waste tires are dis- posed of for processing, or collected for processing, at a solid waste proc- essing facility, a waste tire site which is an integral part of a waste tire processing facility, a waste tire processing facility or a waste tire collection center or are made available to: (A) The department of wildlife and parks for use by the department; or (B) a person engaged in a farming or ranch- ing activity, including the operation of a feedlot as defined by K.S.A. 47- 1501, and amendments thereto, as long as the accumulation has a bene- ficial use to the person accumulating the tires and (i) the secretary determines that the use has no adverse environmental effects and (ii) the accumulation is in accordance with all applicable zoning regulations;

(3) deposit waste tires in a landfill as a method of ultimate disposal, except that the secretary, by rules and regulations, may (A) authorize: (A) The final disposal of waste tires at a permitted solid waste disposal facility provided, before July 1, 1999, of uncontaminated waste tires at a munic- ipal landfill if the tires have been cut into sufficiently small parts to assure their proper disposal or are utilized; (B) the final disposal of processed waste tires at a permitted waste tire monofill; (C) the final disposal of contaminated whole, unprocessed waste tires at a municipal landfill or permitted waste tire monofill; (D) the use of waste tires in their original state as part of a proven and approved leachate collection system in their original state and (B) allow at a landfill; or (E) the use of waste tire ma- terial which has been cut into sufficiently small parts to be used as daily cover material for a landfill; or

(4) receive money in exchange for waste tires unless: (A) The person holds a permit issued by the secretary pursuant to K.S.A. 65-3424b, and amendments thereto; or (B) the person is a tire retailer who collects waste tires from the public in the ordinary course of business.

Sec. 3. K.S.A. 65-3424b is hereby amended to read as follows: 65- 3424b. (a) The secretary shall establish a system of permits for mobile waste tire processors and waste tire processing facilities and permits for waste tire collectors transporters and collection centers. Such permits shall be issued for a period of one year and shall require an application fee established by the secretary in an amount not exceeding $250 per year.

(b) The secretary shall establish adopt rules and regulations estab- lishing standards for mobile waste tire processors, waste tire processing facilities and associated waste tire sites, waste tire collection centers and waste tire collectors transporters. Such standards shall include a require- ment that the permittee file with the secretary a bond or other financial assurance in an amount determined by the secretary to be sufficient to pay any costs which may be incurred by the state to process any waste tires or dispose of any waste tires or processed waste tires if the permittee ceases business or fails to comply with this act.

(c) Any person who contracts or arranges with another person to collect or transport waste tires for storage, processing or disposal shall so contract or arrange only with a person holding a permit from the secre- tary. Any person contracting or arranging with a person, permitted by the secretary, to collect or transport waste tires for storage, processing or disposal, transfers ownership of those waste tires to the permitted person and the person contracting or arranging with the person holding such permit to collect or transport such tires shall be released from liability therefor. Any person contracting or arranging with any person, permitted by the secretary, for the collection or storage of such tires shall maintain a record of such transaction for a period of not less than five years fol- lowing the date of the transfer of such tires.

(c) (d) On and after December 31, 1991, No person shall:

(1) Own or operate a waste tire processing facility or waste tire col- lection center or act as a mobile waste tire processor or waste tire collector transporter unless such person holds a valid permit issued therefor pur- suant to subsection (a); or

(2) own or operate a waste tire processing facility or waste tire col- lection center or act as a mobile waste tire processor or waste tire collector transporter except in compliance with the standards established by the secretary pursuant to subsection (b).

(d) (e) The provisions of subsection (c)(1) (d)(1) shall not apply to:

(1) A tire retreading business where fewer than 1,000 waste tires are kept on the business premises;

(2) a business that, in the ordinary course of business, removes tires from motor vehicles if fewer than 1,000 1,500 of these tires are kept on the business premises;

(3) a retail tire-selling business which is serving as a waste tire col- lection center if fewer than 1,000 1,500 waste tires are kept on the busi- ness premises;

(4) the department of wildlife and parks; or

(5) a person engaged in a farming or ranching activity, including the operation of a feedlot as defined by K.S.A. 47-1501, and amendments thereto, as long as the accumulation has a beneficial use;

(6) a waste tire collection center where fewer than 1,500 used tires are kept on the premises;

(7) a waste tire collection center where 1,500 or more used tires are kept on the premises, if the owner demonstrates through sales and inven- tory records that such tires have value, as established in accordance with standards adopted by rules and regulations of the secretary;

(8) local units of government operating solid waste processing facili- ties and solid waste disposal areas permitted by the secretary under the authority of K.S.A. 65-3407 and amendments thereto;

(9) a person transporting: (A) Waste tires mixed with other municipal solid waste; (B) fewer than five waste tires for lawful disposal; (C) waste tires generated by the business, farming activities of the person or the person's employer; or (D) waste tires for a beneficial use approved by statute or rules and regulations adopted by the secretary; or

(10) a business engaged in processing, for resource recovery purposes, only waste tires generated by the business.

(f) All fees collected by the secretary pursuant to this section shall be remitted to the state treasurer. The state treasurer shall deposit the entire amount of the remittance in the state treasury and credit it to the waste tire management fund.

Sec. 4. K.S.A. 1995 Supp. 65-3424d is hereby amended to read as follows: 65-3424d. (a) In addition to any other tax imposed upon the retail sale of new vehicle tires, there is hereby imposed an excise tax on retail sales of new tires at the rate of $.50 per tire sold vehicle tires (excluding innertubes), including new tires mounted on a vehicle sold at retail for the first time, an excise tax at the following rate: (1) Before July 1, 2001, $.50 per vehicle tire; and (2) on or after July 1, 2001, $.25. Such tax shall be paid by the purchaser of such tires and collected by the retailer thereof.

(b) The tax imposed by this section collected by the retailer shall become due and payable as follows: When the total tax for which any retailer is liable under this act does not exceed the sum of $80 in any calendar year, the retailer shall file an annual return on or before January 25 of the following year; when the total tax liability does not exceed $1,600 in any calendar year, the retailer shall file returns quarterly on or before the 25th day of the month following the end of each calendar quarter; when the total tax liability exceeds $1,600 in any calendar year, the retailer shall file a return for each month on or before the 25th day of the follow- ing month. Each person collecting the tax imposed pursuant to this sec- tion shall make a true report to the department of revenue, on a form prescribed by the secretary of revenue, providing such information as may be necessary to determine the amounts of taxes due and payable here- under for the applicable month or months, which report shall be accom- panied by the tax disclosed thereby. Records of sales of new tires shall be kept separate and apart from the records of other retail sales made by the person charged to collect the tax imposed pursuant to this section in order to facilitate the examination of books and records as provided herein.

(c) The secretary of revenue or the secretary's authorized represen- tative shall have the right at all reasonable times during business hours to make such examination and inspection of the books and records of the person required to collect the tax imposed pursuant to this section as may be necessary to determine the accuracy of such reports required here- under.

(d) The secretary of revenue is hereby authorized to administer and collect the fees tax imposed hereunder by this section and to adopt such rules and regulations as may be necessary for the efficient and effective administration and enforcement of the collection thereof. Whenever any person liable to collect the taxes imposed hereunder refuses or neglects to pay them, the amount, including any penalty, shall be collected in the manner prescribed for the collection of the retailers' sales tax by K.S.A. 79-3617 and amendments thereto.

(e) The secretary of revenue shall remit daily to the state treasurer all revenue collected under the provisions of this act section. The state treasurer shall deposit the entire amount of each remittance in the state treasury and credit it to the waste tire management fund.

(f) Whenever, in the judgment of the secretary of revenue, it is nec- essary, in order to secure the collection of any taxes, penalties or interest due, or to become due, under the provisions of this act, the secretary may require any person charged with the collection of such tax to file a bond with the director of taxation under conditions established by and in such form and amount as prescribed by rules and regulations adopted by the secretary.

(g) The secretary of revenue and the secretary of health and environ- ment shall cooperate to: (1) Ensure that retailers required to collect the tax imposed by this section collect such tax on sales of tires for all vehicles, as defined by K.S.A. 65-3424 and amendments thereto; and (2) develop and distribute to tire retailers educational materials that emphasize ap- propriate waste tire management practices.

Sec. 5. K.S.A. 1995 Supp. 65-3424f is hereby amended to read as follows: 65-3424f. (a) The secretary shall establish a program to make base and abatement grants to private companies, cities and counties which, individually or collectively, submit to the secretary plans, approved by the secretary. Abatement grants shall be used for: (1) Projects to abate waste tire accumulations in existence before July 1, 1990, but no grants for such projects shall be used for any tires accumulated, or added to an existing accumulation, on or after July 1, 1990; and (2) programs to allow free lawful disposal of waste tires not generated in the ordinary course of a business, but not more than one such program shall be conducted per county. Not more than one abatement grant shall be awarded to abate the same waste tire accumulation unless it can be demonstrated by the applicant that the waste tire accumulation exceeded initial quantity esti- mates or that unknown circumstances, identified by the applicant, in- creased project difficulty and cost. No abatement grant payment shall be made on or after July 1, 2002. In awarding abatement grants, the secre- tary shall give preference to projects which include waste tire recycling or energy recovery. The secretary may authorize waste tire landfilling under abatement grant projects if the waste tires are contaminated or if no practical in-state markets are identified. The secretary shall delay waste tire abatement grant projects until July 1, 1998, when possible to maximize the distribution of grant funds through the in-state market stim- ulation program identified in paragraph (d).

(b) The secretary shall establish a program to make base grants to counties which, individually or collectively, submit to the secretary plans approved by the secretary. Base grants shall be used to: (1) Enforce laws relating to collection and disposal of tires; (2) Encourage recycling of tires; or (3) develop and implement management plans for collection, abate- ment, recycling and disposal of tires survey the county or counties to identify and develop an inventory of waste tire accumulations in the county or counties. Applications for base grants shall be submitted to the secretary before January 1, 1997, and no base grant payment shall be made on or after January 1, 1998.

(c) The secretary shall establish a program to make enforcement grants to counties which, individually or collectively, submit to the sec- retary plans approved by the secretary. Enforcement grants shall be used to pay the county's or counties' costs of assessing and enforcing compli- ance with this act and rules and regulations adopted under this act and to educate the public on the provisions and purposes of this act. Enforce- ment grants shall be for an amount not exceeding 75% of the costs in- curred by the county or counties for eligible costs.

(b) Each private company, city, county or group of private companies, cities or counties submitting a plan approved by the secretary shall be eligible for grants pursuant to this section on the basis of priority as de- termined by the secretary. No recipient shall be eligible to receive base grants for more than two consecutive fiscal years, but such limitation shall not apply to abatement grants. The secretary shall require any private company receiving a grant pursuant to this section to file with the sec- retary a surety bond, cash bond or other security in an amount and form approved by the secretary and conditioned on the use of the grant in accordance with the plan approved by the secretary.

(d) The secretary shall establish a competitive private sector grant program to stimulate the development of in-state waste tire recycling or energy recovery markets. The secretary shall solicit proposals in the fiscal year ending June 30, 1997, from private entities which demonstrate the long-term technical and economic feasibility of waste tire recycling or energy recovery projects based upon the receipt of startup funds only through this grant program. One or more grant awards may be made to applicants in the fiscal years ending June 30, 1997, and June 30, 1998, to pay up to 75% of the cost of constructing a new facility or modifying an existing facility to process, and burn for energy recovery or recycle, waste tires. In awarding grants pursuant to this subsection, the secretary may give preference to projects that do not directly compete with existing re- cycling and energy recovery projects.

(c) (e) Private companies, cities and counties may join together, pool- ing their financial resources, when utilizing their grants for the purposes described in subsection (a).

(d) (f) The secretary, in cooperation with the statewide coordinator of waste reduction, recycling and market development, may provide tech- nical assistance, upon request, to a private company, city, county or group of private companies, cities or counties desiring assistance in applying for waste tire grants or choosing a method of waste tire management which would be an eligible use of the grant funds.

(g) The secretary shall submit to the legislature, on or before the first day of the regular legislative session each year, a report of all grants made pursuant to this section. The report shall include: (1) The total contract amounts awarded for each type of grant in each fiscal year and, of those amounts, the total amount awarded to individual counties, groups of counties and private entities; and (2) with respect to each grant awarded, the contract amount and type of grant, the recipient, a description of the project for which the grant was awarded, the number of tires involved and the amount actually spent. The secretary shall submit the report by filing it with the secretary of the senate, the chief clerk of the house of representatives and the chairperson and ranking minority member of each of the senate and house committees on energy and natural resources.

New Sec. 6. (a) The county official, or the official of a designated city, responsible for solid waste management in each county shall report to the secretary any known waste tire accumulation within the county not later than: (1) October 1, 1996, if the accumulation is known before July 1, 1996; or (2) three months after the accumulation becomes known, if unknown before July 1, 1996.

(b) After July 1, 2001, each county shall be responsible for abatement of any waste tire accumulation within the county.

Sec. 7. K.S.A. 1995 Supp. 65-3424g is hereby amended to read as follows: 65-3424g. (a) There is hereby established in the state treasury the waste tire management fund.

(b) Money from the following sources shall be credited to the waste tire management fund:

(1) Revenue collected from the excise tax by K.S.A. 65-3424d and amendments thereto;

(2) permit application and renewal fees provided for by K.S.A. 65- 3424b and amendments thereto;

(3) interest provided for by subsection (e);

(4) additional sources of funding such as reimbursements and appro- priations intended to be used for the purposes of the fund;

(5) any recoveries from abatement and enforcement actions provided for by K.S.A. 65-3424k and amendments thereto;

(6) any interagency fund transfers relevant to providing business de- velopment grants for businesses engaged in recycling or utilizing waste tires in resource recovery programs provided for by K.S.A. 65-3424f and amendments thereto; and

(7) any other moneys provided by law.

(b) (c) Moneys in the waste tire management fund shall be used only for the purpose of:

(1) Making grants as provided by K.S.A. 65-3424f, and amendments thereto;

(2) paying compensation and other expenses of employing personnel to carry out the duties of the secretary pursuant to K.S.A. 65-3424 through 65-3424h, and amendments thereto, but not more than the following shall be used for such purpose: (A) For fiscal years beginning before July 1, 2002, 16% or $200,000, whichever amount is less, of the moneys credited to the fund during the fiscal year shall be used for such purpose preceding fiscal year; and (B) for fiscal years beginning on or after July 1, 2002, 32% or $200,000, whichever amount is less, of the moneys credited to the fund during the preceding fiscal year; and

(3) action by the department before July 1, 2001, to abate waste tires accumulated prior to July 1, 1990, or to abate a nuisance or risk to the public health or the environment created or which could be created by waste tires accumulated after July 1, 1990, if the owner or operator of the site has not been identified or has not abated the nuisance.; and

(4) action by the department after July 1, 2001, to implement interim measures to minimize nuisances or risks to public health or the environ- ment that are or could be created by waste tire accumulations, until the responsible party or county can fully abate the site.

(c) (d) All expenditures from the waste tire management fund shall be made in accordance with appropriations acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary.

(e) On or before the 10th day of each month, the director of accounts and reports shall transfer from the state general fund to the waste tire management fund the amount of money certified by the pooled money investment board in accordance with this subsection. Prior to the 10th day of each month, the pooled money investment board shall certify to the director of accounts and reports the amount of money equal to the proportionate amount of all the interest credited to the state general fund for the preceding month, pursuant to K.S.A. 75-4210a and amendments thereto, that is attributable to moneys in the waste tire management fund. Such amount of money shall be determined by the pooled money invest- ment board based on: (1) The average daily balance of moneys in the waste tire management fund during the preceding month as certified to the board by the director of accounts and reports; and (2) the average interest rate on repurchase agreements of less than 30 days' duration entered into by the pooled money investment board for that period of time. On or before the fifth day of the month following the month in which moneys are first credited to the waste tire management fund, and monthly thereafter on or before the fifth day of the month, the director of accounts and reports shall certify to the pooled money investment board the av- erage daily balance of moneys in the waste tire management fund during the preceding month.

Sec. 8. K.S.A. 65-3424i is hereby amended to read as follows: 65- 3424i. (a) Except as provided by subsection (b), no tire retailer shall refuse to accept waste tires from customers or offer any discount or other mon- etary inducement to customers to encourage customers to remove their old tires from the tire retailer's premises at the time or point of transfer.

(b) A tire retailer may: (1) Ask customers if they wish to retain their old tires at the time of sale; (2) refuse to accept more tires from a cus- tomer than purchased by that customer at the time of sale; or (3) refuse to accept waste tires from a customer purchasing replacement tires for commercial use if the tire retailer does not mount such replacement tires.

(c) Tire retailers shall prominently display or make available to cus- tomers educational materials provided by the department of health and environment and department of revenue relating to proper waste tire management practices.

Sec. 9. K.S.A. 1995 Supp. 65-3424k is hereby amended to read as follows: 65-3424k. (a) Before July 1, 2001, the secretary may undertake appropriate abatement action and may enter into contracts, including grant contracts, for abatement of waste tire accumulations, utilizing funds from the waste tire management fund. After July 1, 2001, the secretary's actions shall be limited to contractual services to perform interim meas- ures designed to minimize nuisances or risks to public health or the en- vironment created by a waste tire accumulation.

(b) Any authorized representative of the secretary may enter, at rea- sonable times and upon written notice, onto any property or premises where an accumulation of waste tires is located to conduct an abatement of the accumulation or to perform interim measures to minimize nuisances or risks to public health or the environment created by a waste tire ac- cumulation.

(c) Whenever the secretary has reason to believe that an owner or operator has accumulated waste tires that create a nuisance or risk to public health or the environment, the secretary may require that owner or operator to abate the accumulation. Such abatement shall be per- formed in accordance with a plan approved by the secretary. The secre- tary shall give notice, by letter, to the owner and operator that the waste tires constitute a nuisance or risk to public health or the environment, and that the waste tire accumulation must be abated within a specified period. If the owner or operator fails to take the required action within the specified period Before July 1, 2001, the secretary may undertake abatement action utilizing funds from the waste tire management fund. if the owner or operator fails to take the required action within the spec- ified time period. After July 1, 2001, the secretary's actions shall be limited to contractual services to perform interim measures designed to minimize nuisances or risks to public health or the environment created by a waste tire accumulation. All costs incurred by the secretary in abatement of waste tires accumulated after July 1, 1990, or in performing interim meas- ures, including administrative and legal expenses, are recoverable from an owner or operator and may be recovered in a civil action in district court brought by the secretary. Abatement costs recovered under this section shall be remitted to the state treasurer, who shall deposit the entire amount in the state treasury and credit it to the waste tire man- agement fund. An action to recover abatement or interim measures costs may be commenced at any stage of an abatement.

(d) In performing or entering contracts for abatement actions under this section, the secretary shall give preference to actions that recycle the waste tires or burn the waste tires for energy recovery. Direct abatement expenditures may include landfilling when waste tires are contaminated or when practical in-state markets cannot be identified.

(d) (e) Neither the state of Kansas nor the waste tire management fund shall be liable to any owner or operator for the loss of business, damages or taking of property associated with any abatement or enforce- ment action taken pursuant to this section.

Sec. 10. K.S.A. 65-3424, 65-3424b and 65-3424i and K.S.A. 1995 Supp. 65-3424a, 65-3424d, 65-3424f, 65-3424g and 65-3424k are hereby repealed.

Sec. 11. This act shall take effect and be in force from and after its publication in the statute book.

Approved April 17, 1996.